Rachel Reeves has affirmed that she will not step down if she implements tax increases in her upcoming Autumn Budget. Earlier today, the Chancellor declined to uphold Labour’s pledge to refrain from raising income tax, VAT, or national insurance. She acknowledged the necessity to make tough choices in her November 26 Budget to prioritize reducing NHS waiting lists, lowering the cost of living, and decreasing national debt.
During an interview later in the day, LBC’s Andrew Marr suggested to Ms. Reeves that she could offer her resignation if she decides to raise income tax. He hinted at a scenario where she could inform the public during the Budget announcement that due to challenging circumstances, she must increase income tax despite her previous promise not to do so.
In response, Ms. Reeves raised concerns about the potential impact on financial markets if she were to resign under such circumstances. She highlighted her track record of managing public finances effectively and steering the economy through global challenges over the past 15 months.
Addressing the issue of breaking Labour’s manifesto promises and potential loss of public trust, Ms. Reeves emphasized the importance of transparency and integrity in decision-making. She rejected the idea of manipulating figures to meet rules superficially, stressing her commitment to upholding the spirit of financial responsibility.
Speaking from Downing Street as the markets opened earlier in the day, Ms. Reeves signaled the likelihood of tax hikes in a pre-Budget speech, stressing the collective responsibility to contribute. She acknowledged the impact of the Tory government’s austerity measures and the challenges posed by the Brexit deal on businesses.
Ms. Reeves reiterated her commitment to being forthright about the consequences of policy choices and emphasized her duty to prioritize what is right over what is popular. She assured that her upcoming Budget would not impose tax increases on the scale of the previous year, which aimed to address a financial shortfall inherited from the previous government.
